2006 (4) TMI 92

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....tance of the Revenue, the following two questions of law are referred for our opinion by the Income-tax Appellate Tribunal under section 256(1) of the Income-tax Act, 1961 (for short herein after referred to as "the Act") : "1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that Rs. 30,000 paid for issue of shares is allowable as a business expendi....

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....aning of section 263 of the Act and directed to modify the assessment and recompute the income for the above assessment year after verifying the claims wherever necessary and as per directions given by him. Aggrieved by the said order the assessee preferred an appeal to the Tribunal. The Tribunal allowed the appeal of the assessee in part and restored the order of the assessing authority in so far....

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....owable deduction. In view of the aforesaid judgment of the Supreme Court, the order of the Tribunal holding it otherwise is unsustainable in law and, therefore, the first question referred for our opinion is answered in the negative and against the assessee and in favour of the Revenue. The answer to the second question depends upon the interpretation to be placed on section 43B of the Act. The....

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.... payable by the assessee as an employer by way of contribution to any provident fund or superannuation fund or gratuity fund or any other fund for the welfare of the employees could be deducted only on actual payment. The deduction is allowed only in computing the income referred to in section 28 of the previous year in which such sum is actually paid by the assessee. In other words, actual paymen....